Ontario Government says, “Whoops!” Amendment to manner of calculating public holiday pay reversed

Effective January 1, 2018, Bill 148 enacted a new manner of calculating public holiday pay under section 24(1)(a) of the Ontario Employment Standards Act, 2000 (“ESA”).

After discussions with stakeholders, the Government of Ontario has passed a new regulation (Ontario Regulation 375/18), which prescribes the same manner for calculating public holiday pay that was used pre-Bill 148. Ontario Regulation 375/18 comes into force on July 1, 2018 and is intended to be an interim measure while the Government of Ontario reviews the public holiday system. Ontario Regulation 375/18 can be found here.

Current section 24 (1) of the ESA
(i.e. after Bill 148)

Effective: January 1, 2018

Prescribed Manner of Calculation per section 24(1)(b) of the ESA
(i.e. after O. Reg. 375/18)

Effective: July 1, 2018

24 (1) An employee’s public holiday pay for a given public holiday shall be equal to,

(a) the total amount of regular wages earned in the pay period immediately preceding the public holiday, divided by the number of days the employee worked in that period; or

(b) if some other manner of calculation is prescribed, the amount determined using that manner of calculation.

The following manner of calculation is prescribed for the purpose of determining public holiday pay for an employee under clause 24 (1) (b) of the Act:

1. The employee’s public holiday pay for a given public holiday shall be equal to the total amount of regular wages earned and vacation pay payable to the employee in the four work weeks before the work week in which the public holiday occurred, divided by 20.

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